HC Deb 03 July 1952 vol 503 cc619-20
37. Mr. Stokes

asked Mr. Chancellor of the Exchequer why, as it was an advantage to allow Australia to build up sterling balances in this country during the war, the United Kingdom is not permitted to build up sterling balances in Australia at the present time.

Sir A. Salter

If, as I understand it, the right hon. Member is suggesting that a form of credit should be granted I would refer him to the reply my right hon. Friend gave to him on 10th June.

Mr. Stokes

But the Minister ought to know that that reply was entirely unsatisfactory. Is he aware that, if the Government allow the present trend to go on, Australia will become increasingly a secondary industry country, that she will produce less and less food and that there will be less and less food coming in this direction? What do the Government propose to do about it?

Sir A. Salter

As I understand the right hon. Gentleman he is suggesting that, in one from or another—and the form he suggests is rather ambiguous—we should give a considerable credit to Australia in order that we might send further unrequited exports to that country. We do not think that that is practicable or desirable.

Mr. Stokes

What do the Government want? Do the Government wish the supply of food from Australia to increase or diminish? Does the right hon. Gentleman understand that, if the Government want the supply of food to increase, they must make special arrangements to allow an increasing supply of capital goods from this country to Australia—and that at once?

Sir A. Salter

Of course we desire that the supply of food should increase, but there is a limit to the extent to which development in Australia can be financed by capital exports from this country, as the right hon. Gentleman should know.